Noble (NE) Q1 2026 earnings summary

Executive summary

• Achieved adjusted EBITDA of $277 million, net income of $121 million, and free cash flow of $169 million in Q1 2026, with a $0.50 per share dividend declared for Q2.

• Secured $565 million in new contract awards, raising backlog to $7.5 billion, with major extensions and new contracts in Brazil, Australia, Guyana, Ghana, and Malaysia.

• Operational disruption from the Iran conflict was limited to one jackup in the Middle East, with all personnel safely evacuated and the rig sold but operated under a bareboat agreement.

• Market conditions for deepwater rigs are robust, with utilization at 95% and open demand up 55% from two years ago, supporting optimism for higher day rates and backlog growth.

• The company operates a global fleet of 31 rigs, focusing on ultra-deepwater and high-specification jackups.

Financial highlights

• Q1 2026 revenue was $786 million, up from $764 million in Q4 2025; adjusted EBITDA margin reached 35%.

• Net income rose to $121 million, with diluted EPS of $0.75; net debt decreased to $1,255 million and net leverage improved to 1.1x.

• Cash flow from operations was $273 million; capital expenditures were $104 million.

• Received $210 million in cash from a jackup sale and completed a $36.5 million lease buyout on BOP systems, with further buyouts planned.

• Redeemed $55 million of 8.5% senior secured notes at 103, optimizing capital use.

Outlook and guidance

• Maintained full-year 2026 revenue guidance of $2.8–$3.0 billion and adjusted EBITDA of $940–$1,020 million.

• Capital expenditures guidance increased by $25 million to $615–$665 million due to the Noble Deliverer reactivation.

• The lower end of EBITDA guidance is fully contracted; upside depends on additional rig opportunities and operational performance.

• Management anticipates a financial inflection in 2027, supported by backlog and a robust bidding pipeline.

• 67% of available days for the remainder of 2026 are committed, with a $7.2–$7.5 billion backlog.